Author Question: Net exports rather than exports are included in demand/expenditures, because: a. Actually, exports ... (Read 85 times)

chads108 · **on:** Jun 30, 2018

Net exports rather than exports are included in demand/expenditures, because:
a. Actually, exports are included and not net exports because only exports are a source of demand.
b. Imports are counted in personal consumption expenditures. Therefore, net exports instead of just exports are included in aggregate demand.
c. Imported goods and services are a part of personal consumption, gross private domestic Investment, and government spending. Therefore, net exports instead of just exports are included in demand.
d. Neither exports nor net exports is included in aggregate demand.
e. None of the above.

Question 2

Of the following balance of payments measures, which one shows bestwhether there are speculative financial capital flows from the nation?
a. Current account
b. Balance on goods & services
c. Balance on goods, services, and net income
d. Capital account
e. Financial account